Accountants called to account on value and equality

6 August 2012

With increasing pressure on businesses for new information evidencing their impact... it’s time to ask if it would make a difference to growth and equality if our accounting principles were applied in a different way?

A campaign calling accountants to account has been launched by an international social value network.

The SROI Network, which is based in the UK, aims to trigger a major debate on the ‘relevance and appropriateness’ of accounting principles.

‘These principles have a huge and yet mostly unrecognised impact on our world,’ it said.

‘With increasing pressure on businesses for new information regarding their work and evidencing their impact, both financially and socially, the SROI Network believes it’s time to ask if it would make a difference to growth and equality, if our accounting principles were applied in a different way?’

‘Inequality is rising and growth is falling. Investment flows that determine growth are influenced by reported profits. Profits which in turn are influenced by the application of accounting principles,’ said the network.

‘But what if the investment flows that follow reported profits are contributing to inequality and not to growth?’

The SROI Network believes that there should now be a wider debate about the accounting principles upon which financial accounts are based.

‘In all the discussions and debate about global, economic, social and environmental challenges, financial accounting principles have not been part of the wider debate,’ said Jeremy Nicholls, the SROI Network’s CEO.

‘Those with an interest in debating the relevance and appropriateness of accounting principles can join in at www.accountingforvalue.org.’

The SROI Network is a membership organisation that promotes the use and development of the Social Return on Investment methodology internationally.

SROI is an approach to understanding and managing the value of the social, economic and environmental outcomes created by an activity or an organisation. It is based on a set of principles that are applied within a framework.

The Good Deals Pioneers Fund is offering a significant cash investment and an estimated £50,000 business support via the Young Foundation's Accelerator programme. The closing date for applications is Friday 26 October – get involved now to kick-start your start venture.

Featured Service Provider

Social enterprises need an understanding banking partner to help manage their financial needs. Social banking specialist Triodos Bank can provide a fully integrated service, including traditional banking services and debt finance.